Insuring a risk
Rate hikes averaging as much as 10% in the transportation insurance business are still not enough to justify insuring a risk.
“A lot of the opportunities we see need significantly more rate,” said Michael Stone, president and COO of RLI’s insurance subsidiaries. In one case, the company determined it could not provide coverage for anything less than a 300% rate increase. The insurer is walking away from significant amounts of business amid an environment that is “in disarray.” Rates were driven down over the past few years, he says, and the sector is just starting to move back toward more appropriate pricing.